APR Changes

IBAT joined
the Texas Land and Title Association, the Texas Mortgage Brokers Association, the
Texas Credit Union League and the Texas Bankers Association in a comment letter
opposing changes to the make up of the Annual Percentage Rate (APR).  As
proposed, those changes would be detrimental to both community banks and the
consumers those banks serve. Additionally, the inclusion of non-lender costs
may very well result in a contraction of firms providing mortgage-related
services, especially in rural areas. To read the joint comment letter, click here.

FDIC October Teleconference

The FDIC has
scheduled its next compliance teleconference for Wednesday, October 10. FDIC staff from the
Division of Depositor and Consumer Protection will focus the call primarily on
the Consumer Financial Protection Bureau's (CFPB) mortgage-related proposals,

  • Real
    Estate Settlement Procedures Act/Truth in Lending Act mortgage disclosure
  • Ability
    to repay standards and the definition of qualified mortgages,
  • Escrow
    requirements for "higher-priced mortgage loans," and
  • New
    provisions for high-cost (HOEPA or "Section 32") loans.

for registering for the October 10th call are available on the FDIC website.

complete your registration online by Friday,
October 5

2012 PAC Auction

Enjoy a weekend at the McGee Ranch located along the Colorado River south of Goldthwaite, Texas in Mills County. The weekend includes a Friday night wine pairing
dinner as Sharla and Milton's guests at Brennan Vineyards in Comanche, Texas; doe hunting and/or exploring the area's shopping on Saturday; meals and accommodations for the weekend. Two doe may be taken during the weekend. To be able to attend the monthly wine dinner, this trip must be taken during the second weekend of the month. *The purchase price does not include processing deer meat, however, a processor is available in Goldthwaite.

Senior Housing Crime Prevention

is open for the Senior Housing Crime Prevention Foundation's 9th Annual Doing Well by Doing Good Bankers Conference, October 25-26, 2012 at the Mayflower Hotel in
Washington, D.C.  

Earlier this
year, the IBAT Education Foundation began promoting the
SHCPF, which connects banks with area senior living facilities to connect them
to Senior Crimestoppers and install locked safes in resident rooms.  In
addition to the positive impact made in the lives of seniors, the program has
also been approved for CRA by federal regulators.  

The Doing Well by Doing Good
Bankers Conference serves to connect interested bankers with current
participants in the program.  Keynote speaker Sandra Braunstein, Director of
Compliance Policy and Community Affairs for the Federal Reserve
will discuss developments in CRA and what is on the horizon in the regulatory
arena. Bankers reveal best practices on how to prepare for your next CRA
examination, and the Foundation's current participating banks share ways they
have leveraged their nursing home sponsorships into productive business
opportunities and positive public relations events.  

Basel III Carve-Out?

Last week, 53
Senators, including Texas Senators John Cornyn and Kay Bailey Hutchison, signed
a letter urging federal regulators to consider the
unintended consequences of including community banks in the Basel III Capital
proposals. As always, IBAT extends our sincere thanks to our Texas Senators for
their continued support of community banking.  

proposed capital rules are extremely complex and require the reporting and
maintaining of granular data, greatly increasing the compliance burden on
community banks," the letter noted.  It went on to cite the
challenges that community banks would experience raising capital as a result of
Basel III, and offered the concern that community banks might have to change
their business plans in ways that would reduce lending and economic growth.

The comment
period for the Basel III Capital proposals ends on October 22. Please see IBAT's letter for assistance in writing your
personalized comment letters.

Leadership in Action

Though we're in the digital age, personal
recommendations still go a long way in business. Word-of-mouth referrals
account for a good portion of new customers for many small-business owners, and
the ease of making recommendations is only made simpler with email and social
networking. Incentivizing your current customers to refer their friends and
contacts can boost business. Here are a few ways you can get the most from
referral incentives. More

Basel III Calculator from FDIC

federal regulators released a tool for estimating the potential
impact on banks as a result of the Basel III capital rules.

The new
calculator-which is an Excel spreadsheet-has been pre-populated with bank data
from the June 30th call reports. As mentioned in previous weeks,
IBAT encourages all members to write customized comment letters on the
proposals before the October 22nd deadline.

For your
convenience, a link to the IBAT comment letter to federal regulators can be found here.

Electronic Federal Benefit Payments

Source: U.S. Department of the Treasury, Financial Management

who receives Social Security/Supplemental Security Income or other federal
benefit payments by paper check is required by the U.S. Department of the
Treasury to switch to an electronic payment option by March 1, 2013.

new public service announcement, five educational videos and print materials
are now available to help you assist the people you serve with common questions
about the requirement and getting payments electronically. Videos feature
actual customer service agents from the U.S. Treasury Electronic Payment
Solution Center and answer the following questions:

  • Why
    is the U.S. Treasury requiring electronic federal benefit payments
  • How
    will I know my money has been deposited?
  • How
    does direct deposit work?
  • Are
    electronic payments safe?
  • How
    does the Direct Express® card work?

can view the PSA and educational videos on GoDirect.org or by visiting its YouTube channel. Print materials can be downloaded
from the Educational Videos and Fliers toolkit on www.GoDirect.org.

To order a looped DVD of the videos, contact a Go Direct campaign
representative by emailing GoDirect@webershandwick.com or by calling 952-346-6055.


Have you downloaded IBAT2GO, the official
mobile application of the Independent Bankers Association of Texas?  If
so, show us your IBAT pride by having a friend snap a picture of you using the
app, and you'll be entered into a drawing for a new iPad!

Don't have
an iPad/iPhone, so you can't download IBAT2GO?  Take a photo of yourself
using someone else's iPhone or iPad, or send an email to Christopher Williston
without a photo, by October 1, 2012, indicating your desire to enter the

Click here to view official contest rules.

IBAT Convention

The 38th Annual Convention is a little more
than a week away! The event will take place at the Hilton Austin Hotel, October 6-9. The IBAT
staff is diligently working on putting the final touches on making this event
more valuable than ever. There's still time to register

you're not sure about what to expect, here's a sneak peek:

  • Nationally
    renowned speakers and general sessions;
  • Banker
    peer resource sharing;
  • Annual
    PAC Auction;
  • Bike
  • Classy
    and fun entertainment;
  • Golf;
  • Much

you have questions or need any information about registering, please don't
hesitate to contact our registrar Jennifer Roe (512.275.2213 direct line) or
email her at jroe@ibat.org.

Support the IBAT PAC

Three days and two nights at one of the Caesars Entertainment properties in Las Vegas, Nevada. Offer is good seven days of the week but excludes holidays and special events. The offer expires on June 1, 2013. Donated by Michael Moores, Citizens National Bank, Henderson.


Take a look at all of the items that have been donated so far.

IBAT Comment Letter

IBAT submitted a comment
letter opposing the Financial Accounting Standards Board proposals under
Disclosures about Liquidity Risk and Interest Rate Risk (Topic 825).
IBAT believes the requirements do not provide information that would be
useful to community
bank investors.  Additionally, the proposed disclosures as constructed
may provide false assumptions of future risk and provide no meaningful
basis for comparison.  Finally, the cost to audit and produce the
information in a bank's annual financial statement
would be significant, and expands the ever-increasing financial and
regulatory burden already faced by community banks. To read IBAT's
comment letter

click here